Filipino groups eye $1.5bn airport redevelopment PPP

Ayala Corporation, San Miguel Corporation and Metro Pacific Investments Corporation have expressed their interest in bidding for the redevelopment project of the Ninoy Aquino International Airport.

The three Filipino conglomerates said in separate occasions that they were looking into the PHP74.6 billion ($1.53 billion; €1.38 billion) project, which will be launched under the PPP model, with a concession period of 15-20 years, by the Department of Transportation and the Manila International Airport Authority.   

San Miguel said in a filing with the Philippine Stock Exchange that the company will not only participate in the bidding for the NAIA redevelopment project, but also in all PPP projects, as a show of support to the government. 

Ayala managing director Rene Almendras said that its infrastructure unit – AC Infrastructure – was studying the project, but that it was too early to say whether the company would participate in the auction. He told local press sources that the firm met a few foreign partners for the airport deal. 

Metro Pacific chairman Manuel Pangilinan said last week that his group was also looking at the PPP. This month, the group was officially awarded a $491 million expressway PPP project in Manila. 

The National Economic and Development Authority has recently approved the project and the PPP procurement is expected to be rolled out soon, with an agreement signed by September 2017. The concessionaire will be responsible for modernising NAIA’s existing terminals for air traffic and land side management, as well as for passenger services. The operation and maintenance of the airport will meet International Civil Aviation Organisation standards. 

Meanwhile, San Miguel and Metro Pacific teamed up in a bid to revive the proposed $10 billion Manila Bay International Airport. The two groups said in June that they were waiting for guidelines from the Duterte administration regarding unsolicited proposals for infrastructure projects.